64-(68)

II SÉRIE — NÚMERO 1

five-year period in order to comply with the requirement in a), i), above. The Fund shall adopt regulations with respect to the bases on which these calculations shall be made and with respect to the timing of the designation of participants under article xix, section 5-a), ii), in order to assist them to comply with the requirement in a), i), above;

iii) The Fund shall give special notice to a participant when the calculations under a), ii), above indicate that it is unlikely that the participant will be able to comply with the requirement in a), i), above unless it ceases to use special drawing rights for the rest of the period for which the calculation was made under a), ii), above;

iv) A participant that needs to acquire special drawing rights to fulfill this obligation shall be obligated and entitled to obtain them, for currency acceptable to the Fund, m a transaction with the Fund conducted through the General Resources Account. If sufficient special drawing rights to fulfill this obligation cannot be obtained in this way, the participant shall be obligated and entitled to obtain them with a freely usable currency from a participant which the Fund shall specify;

b) Participants shall also pay due regard to the desirability of pursuing over time a balanced relationship between their holdings of special drawing rights and their other reserves.

2. If a participant fails to comply with the rules for reconstitution, the Fund shall determine whether or not the circumstances justify suspension under article xxiii, section 2-b).

SCHEDULE H Termination of participation

1. If the obligation remaining after the setoff under article xxiv, section 2-b) is to the terminating participant and agreement on settlement between the Fund and the terminating participant is not reached within six months of the date of termination, the Fund shall redeem this balance of special drawing rights in equal half-yearly installments within a maximum of five years of the date of termination. The Fund shall redeem this balance as it may determine, either a) by the payment to the terminating participant of the amounts provided by the remaining participants to the Fund in accordance with article xxiv, section 5, or b) by permitting the terminating participant to use its special drawing rights to obtain its own currency or a freely usable currency from a participant specified by the Fund, the General Resources Account, or any other holder.

2. If the obligation remaining after the setoff under article xxiv, section 2-b) is to the Fund and agreement on settlement is not reached within six months of the

date of termination, the terminating participant shall discharge this obligation in equal half-yearly installments within three years of the date of termination or within such longer period as may be fixed by the Fund. The terminating participant shall discharge this obligation, as the Fund may determine, either a) by the payment to the Fund of a freely usable currency, on b) by obtaining special drawing rights, in accordance with article xxiv, section 6, from the General Resources Account or in agreement with a participant specified by the Fund or from any other holder, and the setoff of these special drawing rights against the installment due.

3. Installments under either 1 or 2 above shall fall due six months after the date of termination and at intervals of sis months thereafter.

4. In the event of the Special Drawing Rights Department going into liquidation under article xxv within six months of the date a participant terminates its participation, the settlement between the Fund and that government shall be made in accordance with article xxv and schedule I.

SCHEDULE I Administration of liquidation of the Special Drawing

Rights Department

1. In the event of liquidation of the Special Drawing Rights Department, participants shall dis-chargie their obligations to the Fund in ten half-yearly installments, or in such longer period as the Fund may decide is needed, in a freely usable currency and the currencies of participants holding special drawing rights to be redeemed in any installment to the extent of such redemption, as determined by the Fund. The first half-yearly payment shall be made six months after the decision to liquidate the Special Drawing Rights Department.

2. If it is decided to liquidate the Fund within six months of the date of the decision to liquidate the Special Drawing Rights Department, the liquidation of the Speck: Drawing Rights Department shall not proceed until special drawing rights held in the General Resources Account have been distributed in accordance with the following rule:

After the distributions made under 2-a) and b) of schedule K, the Fund shall apportion its special drawing rights held in the General Resources Account among all members that are participants in proportion to the amounts due to each participant after the distribution under 2-b). To determine the amount due to each member for the purpose of apportioning the remainder of its holdings of each currency under 2-d) of schedule K, the Fund shall deduct the distribution of special drawing rights made under this rule.

3. With the amounts received under 1 above, the Fund shall redeem special drawing rights held by holders in the following manner and order:

a) Special drawing rights held by governments that have terminated their participation more than six months before the date the 3oard of Governors decides to liquidate